Shiloh Industries Reports Q3 and Nine-Months Results
25 August 2000
Shiloh Industries Reports Third-Quarter and Nine-Months Results
CLEVELAND, Aug. 25 Shiloh Industries, Inc. ,
a leading manufacturer of engineered blanks, stamped components and modular
systems for the automotive, truck and other industries, today announced
financial results for its third quarter and the nine months ended July 31,
2000.
For the third quarter of fiscal 2000, net income decreased 16.4% to $3.5
million, or $0.25 per basic and diluted share, from $4.1 million, or $0.32 per
basic and diluted share, for the third quarter of fiscal 1999. Operating
income for the third quarter of fiscal 2000 increased by 9.9% to $9.3 million,
from $8.4 million in the third quarter of 1999. Revenues for the third
quarter of fiscal 2000 increased 83.7% to $154.1 million, from $83.9 million
in the comparable period of fiscal 1999.
For the nine months ended July 31, 2000, net income increased to $13.1
million, or $.94 per share, compared with net income of $10.2 million, or $.78
per share, for the nine months ended July 31, 1999. Operating income for the
first nine months of fiscal 2000 increased to $29.8 million compared with
operating income of $21.3 million for the first nine months of fiscal 1999.
Revenues for the first nine months of 2000 increased 80.6% to $460.6 million
from $255.0 million for the first nine months of fiscal 1999.
The substantial increase in revenue primarily reflects the inclusion of
MTD Automotive and Ohio Welded Blank in the results for the third quarter of
fiscal 2000. MTD Automotive, a supplier of high quality engineered metal
parts and components to the automotive sector, was acquired on November 1,
1999. Ohio Welded Blank, an expansion of Medina Blanking, is a state-of-the-
art manufacturing facility for tailor-welded blanks for the automotive sector.
This facility became operational in November 1999.
Jack F. Falcon, president and CEO, said it was a positive quarter despite
the drop in earnings caused by weak performance by certain tool & die
operations, a general softening in the heavy truck sector and reduced volumes
of certain light-truck and automotive platforms. Two major projects are
currently underway. Ohio Welded Blank is being refitted with state-of-the-art
laser-welding equipment and will have one of North America's largest
integrated and automated laser welding systems. Also, the company's new
facility in Mexico is now online and producing welded blanks for several GM
vehicles.
In addition, he noted the Company is expected to close in late August or
early September on the purchase of the assets of A.G. Simpson (Tennessee) Inc.
The assets consist of a modern plant and equipment that produce automotive
stampings and assemblies, primarily for Nissan Motor Corporation, Johnson
Controls, Inc., Ford Motor Company, Saturn Corporation and Visteon
Corporation. The acquisition reflects a strategic expansion of the Company's
capabilities, plus improves its position as a key supplier of engineered metal
products for seating and interior structural applications.
Mr. Falcon said the Company is actively marketing its Valley City Steel
operations and still evaluating strategic alternatives for its Canton Tool &
Die and Utica Tool & Die operations. The strategic goal is to balance steel
processing and tool & die and capacity with internal demand and market
conditions.
The Company expects to record a charge in the fourth quarter of fiscal
2000 relating to tool & die operations. The Company also expects that certain
factors impacting earnings during the third quarter may continue to impact
results of operations during the fourth quarter. Fourth-quarter earnings per
share is expected to be below prior year results.
Subsequent to the close of the third quarter, the Company entered into a
$300 million revolving credit facility with the Chase Manhattan Bank.
SHILOH INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands)
Three months ended Nine months ended
July 31, July 31,
2000 1999 2000 1999
Revenues $154,100 $83,869 $460,594 $255,035
Cost of sales 132,495 68,721 393,197 211,209
Gross profit 21,605 15,148 67,397 43,826
Selling, general and
administrative
expenses 12,341 6,720 37,556 22,522
Operating income 9,264 8,428 29,841 21,304
Interest expense 4,049 2,063 10,747 5,551
Interest income 14 10 65 91
Minority interest --- 86 --- 421
Other income (expense),
net 156 126 1,691 150
Income before income
taxes 5,385 6,587 20,850 16,415
Provision for income
taxes 1,930 2,454 7,714 6,238
Net Income $3,455 $4,133 $13,136 $10,177
Earnings per share:
Basic Earnings
Per Share $.25 $.32 $.94 $.78
Basic Weighted Average
Number of Common
Shares 13,973 13,081 13,973 13,081
Diluted Earnings
Per Share $.25 $.32 $.94 $.78
Diluted Weighted Average
Number of Common
Shares 13,973 13,086 13,977 13,087
SHILOH INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
July 31, October 31,
2000 1999
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $710 $1,576
Accounts receivable 97,071 79,670
Inventory 79,761 47,119
Deferred income taxes --- 1,581
Prepaid expenses 7,795 5,758
Total current assets 185,337 135,704
Property, plant and equipment, net 304,930 269,627
Goodwill and other intangible assets, net 12,017 11,647
Other assets 8,430 8,742
Total assets $510,714 $425,720
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $75,574 $38,677
Accrued income taxes 4,803 1,294
Deferred income taxes 4,766 ---
Advanced billings 910 225
Other accrued expenses 12,968 10,196
Total current liabilities 99,021 50,392
Long-term debt 190,400 171,450
Deferred income taxes 15,961 22,309
Long-term benefit liabilities 3,633 2,991
Other liabilities 787 450
Total liabilities 309,802 247,592
Stockholders' equity:
Common stock 145 131
Paid-in capital 49,034 39,400
Retained earnings 151,733 138,597
Total stockholders' equity 200,912 178,128
Total liabilities and
stockholders' equity $510,714 $425,720